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What effects would each of the following have on aggregate demand or aggregate supply? In each case use a diagram in your notes to determine the expected effects on the equilibrium price level (P) and level of real output (Q). For each of the economic structures described in a-j, give the effects on P and Q. (ie + or -). (Assume that all other things remain constant.) a. A widespread fear of depression on the part of consumers. b. A $2 increase in the excise tax on a pack of cigarettes. c. A reduction in interest rates at each price level. d. A major increase in Federal spending for health care. e. The expectation of rapid inflation. f. The complete disintegration of OPEC, causing oil prices to fall by one-half. g. A 10 percent reduction in personal income tax rates. h. A sizable increase in labor productivity (with no change in nominal wages). i. A 12 percent increase in nominal wages (with no change in productivity). j. Depreciation in the international value of the dollar.
Illustrate what are the laws governing "involuntary treatment" in state of Pennsylvania? Describe the process who makes the decisions, how long the treatment can last, etc, for state of PA.
From the scenario, suggest substantive ways in which Herb and Renee may use the information in the table in order to ascertain the profit maximizing level of output and price. Provide a rationale for your decision.
Assuming all other things equal, what would happen to the canadian dollar real exchange rate under each of the following circumstances?
Who holds the federal bureaucracies accountable for their actions? How are they held accountable?
If marginal product is greater than average product, average product is falling. Marginal cost is less than average variable cost when average variable cost is falling. If the marginal cost curve is below the average variable cost curve, then margina..
Show the IS, LM or FE curve shifts in response to the following events. Note we are not analyzing general equilibrium here, just the shifts of the individual curves. Increase in the riskiness of bonds relative to holding money
A firm in a perfectly competitive market invents a new method of production which lowers its marginal costs. Illustrate what happens to its output.
Cost in terms of pain, discomforts, disabilities involved in supply of factors of production by their owner are termed as ______a) Real cost b) Explicit cost c) Social cost d) Implicit cost
Write a one page response to the following statement: "U.S. regulators should enforce antitrust laws against the Microsoft Corporation."
Decide whether you should pursue a multi-domestic or a global strategy for a beer making company in the United States. Explain which strategy will be appropriate to increase the sales of your beer in foreign markets?
What are the key determinants of the price elasticity of demand for meals served at high-end restaurants?
Where there currently is a tariff. What is the effect of this tariff on the U.S. economy.
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